Port of Port Angeles approves three ground leases

Agency finalizes 15-year pact with Amazon for warehouse

PORT ANGELES — Port of Port Angeles commissioners unanimously approved three ground leases they said will further the port’s environmental goals, create jobs and contribute to the local economy.

On Tuesday, they finalized a 15-year agreement with Amazon that includes 10 five-year renewal options.

Amazon plans to build a 35,000-square-foot warehouse and distribution facility on 8 acres at 2100 S. Airport Road. Amazon will pay the port $188,850 per year minus $15,000 per year for site improvements for a total of $173,850 per year.

Amazon has said the facility will initially employ 100 workers and 50 drivers with a goal of growing to 200 total employees.

“Their business model has negatively impacted a lot of rural communities. However, it’s so convenient to the consumer and their business model is very attractive to the consumer,” commissioner Colleen McAleer said.

“Previously it was exporting our dollars out to areas throughout the U.S., and at least now some of that money will come back to our county and circulate within our economy. That’s a plus.”

Commissioner Connie Beauvais said having large semi-trailer trucks, and eventually aircraft, transport goods to the facility for local distribution would have a positive impact on the environment by reducing the total number of trucks that travel from Bremerton to Clallam County every day.

A 50-year lease with Renaissance Property Holding for 2.25 acres on the south side of Marine Drive will be the site of a new Brix Marine manufacturing facility. The lease includes three 10-year renewal options and will generate $56,000 in revenue for the port. The structures currently on the property are scheduled for demolition in 2026.

“We’re excited about the improvements you’ll make to the property and how that will affect employment in Clallam County,” McAleer said.

Perry Knudson, managing director at Brix, said the facility would enable the company to double its capacity and manufacture larger vessels.

The third ground lease was with 30 Gold for an 8,300-square-foot vacant property at 436 Marine Drive. The company will pay the port $10,500 a year on a five-year lease with two one-year renewal options. It plans to build a mobile coffee shop, which will give it the ability to move as the port upgrades the site for future construction.

“They have been wanting to start their own business, and they have been working for three years and have spent well into six figures just to get to this point, primarily due to permitting issues,” said Caleb McMahon, the port’s director of economic development. “We think it’s a good addition, and there’s going to be a lot of people down there.”

Commissioners also approved a $288,000 change order for the installation of a water system connector at the Marine Trade Center project that has been demanded by the city of Port Angeles.

Chris Hartman, the port’s director of engineering, said the change order reflects costs associated with the installation of about 800 more feet of pipe and different connection points.

When the port received its permit from the city for clearing and grading the site at the former PenPly mill in May, the city hadn’t completed a final review, Hartman said. However, it allowed the port to begin work in June.

“Our frustration is how much time it took the city to finally provide that guidance, not the final outcome,” Hartman said. “We were under a fairly strict guideline to get the project up and running.”

The change order will increase the port’s payment to contractor Intrawest Construction by about 3.5 percent. However, the port will be reimbursed for 66 percent of the amount by the Economic Development Administration; it will end up paying $107,000 of the total amount.

Commissioners also reviewed an update of the port’s preliminary 2025 operations budget as well as its revised 2025 strategic plan. A public hearing on the 2025 budget and tax levy will be held at 9 a.m. Oct. 29 at the port offices, 338 W. First St. The meeting packet that contains the 2025 preliminary budget and strategic plan can be found on the port’s website at tinyurl.com/sxm843j6.

In other news, Life Flight Network is on track to relocate its fixed-wing aircraft service from Port Angeles to Renton early next year, a representative confirmed Monday.

The Pilatus PC-12 that has been stationed at William R. Fairchild International Airport since 2019 and its staff will move to Renton Municipal Airport.

Life Flight will continue to provide emergency medical care and helicopter air service at the airport. The relocation of fixed-wing aircraft will have no impact on the Port of Port Angeles, McMahon said.

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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.

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